Finance Minister Dr. Ken Lipenga on Friday announced a revised 2012/2013 Fiscal Year Budget which has been revised from K461.4bn from K394.9bn.
Lipenga said Domestic Revenues had been revised upwards to K278.9 billion from K 270.4 billion approved in the Budget and that the revised targets comprise K243.8 billion tax revenues and K35.1 billion non tax revenues.
The minister also announced that the Mid-Year Revenue Target was K130.0 billion consisting of K113.5 billion tax revenues and K16.5 billion non-tax revenues and that this target had been surpassed.
“I wish to report that we have surpassed this target,” said Lipenga, “At the end of the first half of the fiscal year, actual out-turn for domestic revenues was K133.8 billion of which K120.9 billion and K12.9 billion were tax and non-tax revenues, respectively, representing an over-performance of K3.9 billion.”
According to Dr. Lipenga, Tax Revenues over-performed by K7.5 billion while Non tax revenues underperformed by K3.6 billion.
He attributed the tax revenues over-performance to macro-economic factors such as the exchange rate adjustment and price increases coupled with efficiencies in the tax administration system by the Malawi Revenue Authority while Non-tax revenues, he said, underperformed largely on account of shortfalls in fuel levies.
The Finance Minister also observed that the country was beginning to see some hopeful signs on her external position following increasing gross official reserves.
“As at end-December 2012, gross official reserves stood at US$215.4 million, which compares with the US$82.9 million recorded at the end of the previous fiscal year. This increase of US$142 million is, from any point of view, an impressive achievement,” he said.
On grants, Dr. Lipenga said in the first half of the 2012/13 Financial year, they were projected at K109.6 billion comprising K50.6 billion Program Grants, K37.4 billion Dedicated Grants and K21.6 billion Project Grants.
He however said grants under-performed by K5.6 billion largely on account of lower receipts from dedicated grants to NAC and Education Sector Support as well as Project Grants.
“Against the projection of K109.6 billion, a total of K104.0 billion was received, of which K56.6 billion were Program Grants, K29.4 billion were Dedicated Grants and K18 billion were Project Grants,” said the Minister.
Parliamentarians will begin to comment on the Finance Minister’s Mid-Year Statement on Wednesday February 20, 2013 after discussing the approval of the new Auditor General Peter Kamange.
On Monday and Tuesday, the house will continue to comment on President Dr. Joyce Banda’s State of the National Address she delivered on February 8, 2013 during the opening of the 44th Session of Parliament.Follow and Subscribe Nyasa TV :